We know that buying residential property and renting it is a decent play with the current conditions, low interest rates, and reasonable purchase prices.

There are still flipping opportunities, but they are slowing and probably will continue to tighten as we clear out the excess housing stock. Plus there are still too many players in the game, making good deals harder to find.

Ag land has been good the last five years (12-14% per year)and is forecasted to do well over the next 5 -10 years. Most of us can't play based on the size of the investment, and lack of funding available.

Most commercial is also a big boys game, and I just don't know enough to play there. If you do, please share.

To get the best return, we want to buy what no one else is buying and sell when they are buying. I am looking for the next real estate play.

We know that rates will start increasing in the coming months, they are being held down by 1/2-1% by the Fed's bond buying and that can not go on forever. The Fed has now tied interest rates to unemployment, so that will keep them lower in the short term, but HUD is forecasting 51/2 - 6% by the end of 2014.

I think we can count the interest deduction out, if not this year, in the next five. But I don't see that as having much of an impact on anything other than the luxury second home market (and maybe boats and RV's but we don't care about that).

The changes in the CPI calculations that take effect in March will have some effect on appreciation, but I think that is mostly smoke and mirrors.

I am thinking maybe condos are the next play, they are not selling as well now because of the ratio of mtg payment to assoc. fees, but some still cash flow as rentals. As rates increase they will sell better.

Possibly vacation rentals? if the deduction goes away, fewer people will purchase, but they will still take vacations.

My other thought is 4 and 6 flats. I think the cost of rental -vs- cost of home-ownership will return to past levels which should equal higher cap rates.

So what are your thoughts? To make it easy, lets say your total investment is under $750,000. Those of you in California and New York City can double that(you live in a different world than I do). You are investing 20% of your own money. Where would you put it (Real Estate only) for the best return in the next 5 years?

Most of those are too expensive for the average budget, but the elder care has possibilities. I don't have any in my market, but are there elder care/independent living condos available in other markets?

Could be a good investment, plus I will need one for myself before too long.

I like the idea of elder care or child care. I think it is profitable since usually parents are both working so they've no choice but to leave their kids in a day care. Elder care has the same reasons too.

It depends entirely on where you are, how much water you have, how many growing days in the season. In my little valley we figure you need 1.5 - 2 acre per pair (cows), where the family ranch is we figure 25-30 acre per pair. right now a decent pair can bring $1,100 a year gross. Across the heartland you can grow lots of grain on an acre, here you can't grow any. You also have to consider distance to rail and transportation. Live stock is sold by weight, and the longer the transport the more weight you lose.

You need to figure out what is grown in the area that you are looking at, how it gets to market and how well it produces. Most county extension offices can give you an idea of production per acre for any given product, that can be raised or grown in that area.

The other factor you need to consider is the size of the parcel. There are very few buyers for large parcels, but small parcels will not sell at the same values. You have to have enough land to be profitable, The equipment is expensive in most areas you will need at least a full section to break into profit for a general farming operation.

The longer a parcel sits unused the less its worth. So if your going to invest you need to have it leased out or farm it yourself.

And finally farmland is not a traditional bank deal, most ag operations would not cover the service on a traditional loan 3 years out of 5. Farmland has been great the last couple of years, 10 to 13 % returns, and quite a bit of volume. But the buyers are mostly big cash buyers or corporate ag operations.

Question is why do I need to invest 20% of my own money? Time to revise your thinking. My money can generate a 100% return on it's own at the present. I expect other peoples money to cover my other investing, I provide what I know and when I know it to cover my share, don't need to throw in cash too.

Question is why do I need to invest 20% of my own money? Time to revise your thinking. My money can generate a 100% return on it's own at the present. I expect other peoples money to cover my other investing, I provide what I know and when I know it to cover my share, don't need to throw in cash too.

I think I agree with you. Being in this business we have a skill set and a knowledge base that provides us an opportunity to participate in investments with little or no money invested. I keep those ventures in my business separate from my personal finances. I will use other peoples money in my business, but I will not with my personal finances. My original question was less about what money or structure you use and more about what the next real estate investment play is.

I would like to here more about your 100% return, but that may be a different thread.

Im looking at the midwest. Corn and Soybeans. I think the biggest thing is how close are you to a farmer that are willing to lease land from you. You cant drive all your tractors 20 miles to fields whenever you need to plow, plant and harvest.

Residential property investment is a best option for peoples those are looking for a safe monthly income. Commercial property investment is not possible for the middle class peoples, it is for big boys only. I like to investment in the residential property :)

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